The Central Board of Direct Taxes has recently passed a direction on 07.10.2015 wherein it has been notified that the Assessing Officers of the Revenue should give quick effect to the appeal orders of the CIT (Appeal) which are pending. It has been categorically directed that the Commissioners should urgently keep vigil over the issue whether the Assessing Officers are giving effect to the orders of the CIT (Appeal) within due time and the taxpayers face no inconvenience.
By this directive being F. No. 279/Misc/141/2015-1TJ passed by the Ministry of Finance, Department of Revenue, New Delhi, all the Chief Commissioners of Income Tax as well as all the Director Generals of Income Tax have been directed to strictly comply with the orders within the time framed failing which it would amount to contempt on the part of the officers.
The Department aims to implement compliance of all orders passed by the CIT (A). However it is observed that grievances are being received for the delays on the part of the Assessing Officers of the Revenue in giving effect to the orders of CIT (A).
It was further notified that the Range Head should monitor the authenticity and timely effect of the said orders.
Consequences of failure in giving timely effect of the orders:
It was further notified that in case of any pendency regarding the appeal effect beyond one month has to be reported by the Range Head to the Commissioner of Income Tax in the report of monthly activities together with reasons for such delay.
The directive also provides for sufficient procedural control as its implementation has been found lacking.
The Commissioners of Income Tax are directed to ensure that Range Heads report the total number of appeals which are found pending for more than 30 days for want of effect in their letters. It has also been directed that the Range Heads should inquire into the cases involving delay and they should try their level best to expedite the process of giving timely effect to the orders of the CIT (Appeal).
The Commissioners of Income Tax should quickly attend to this grievance as it reflects want of monitoring to the instructions of the Central Board of Direct Taxes.
Significance of orders of appeal:
An appeal before the Commissioner of income tax (Appeals) is a significant remedy available to the tax payers.
The commissioner of Income Tax (Appeals) is the first appellate authority under the Income Tax Act. This forum helps to redress the grievances against the assessment orders passed against the assessees.
However, the right of appeal is not an inherent right. It is a right created due to the provisions of the statute which has been categorically stated by the Hon’ble Bombay High Court in the judgment passed in the case of CIT vs. Garware Nylons Ltd. (212-ITR-242)
Section 246A of the Act provides the category of orders against which an appeal can be filed. The List is an exhaustive list.
Therefore the orders passed in the appeals should be strictly followed by the Assessing Officers to give quick relief to the assessees.